HomeMy WebLinkAboutInternal Revenue Service-12/16/2013CLOSING AGREEMENT ON FINAL DETERMINATION
COVERING SPECIFIC MATTERS
Under section 7121 of the Internal Revenue Code of 1986, as amended (the "Code"),
the City of Waterloo, Iowa, EIN 42-xxxx (the "Issuer") and the Commissioner of Internal
Revenue (the "Service") make this closing agreement (the "Agreement").
WHEREAS, the parties have determined the following facts and made the following
legal conclusions and representations:
A. The Issuer issued $7,X00C,000 General Obligation Bonds, Taxable Series 2009A
(Qualified Build America Bonds) on June 24, 2009 (the "Issue Date") and
maturing on June 1, 2021 (the "Bonds").
B. The Issuer irrevocably elected to issue the Bonds as build America bonds under
section 54AA of the Code and to receive refundable credits as provided in
section 6431.
C. On the Issue Date, the Issuer reasonably expected to comply with section 54AA
and related provisions of the Code.
D. The Service has determined that the June 1, 2010-2016 maturities ("Excess
Premium Bonds") were issued with an amount of premium in excess of the de
minimis amount of premium permitted by section 54AA(d)(2)(C) of the Code (the
"Violation").
E. Section 54AA(d)(2)(C) of the Code provides that a bond shall not be treated as a
build America bond if the issue price has more than a de minimis amount of
premium.
F. The Service has not formally asserted any claims against the Issuer or sought to
disallow or otherwise recover any credits paid to the Issuer in accordance with
section 6431 of the Code with respect to interest on the Bonds.
G. The Issuer and the Service desire to resolve the issue raised during the
examination of the Bonds.
H. The terms of this Agreement were arrived at by negotiation between the Issuer
and the Service and may differ from the terms of settlement of other bond issues
examined or to be examined by the Service.
NOW IT IS HEREBY DETERMINED AND AGREED PURSUANT TO THIS CLOSING
AGREEMENT EXECUTED BY THE PARTIES HERETO UNDER CODE SECTION 7121
THAT FOR FEDERAL INCOME TAX PURPOSES:
1. Prior to the execution and delivery of this Agreement by the Service, the Issuer
shall cause to be'paid the sum of Five Thousand and 00/100 dollars ($5,000.00)
(the "Settlement Amount") to the Service via the Electronic Federal Tax Payment
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System and in accordance with the directions contained in Exhibit A to this
Agreement. Payment of this Settlement Amount will not be made from proceeds
of bonds described in section 103(a) of the Code or any tax -advantaged bonds.
2. For purposes of the calculation of credits under section 6431 of the Code
allowed with respect to interest payments, the Violation is disregarded and the
Excess Premium Bonds are treated as build America bonds. As such, the
interest paid on each interest payment date for the Excess Premium Bonds will
be calculated in accordance with the debt service schedule included with the
Form 8038-G filed by the Issuer for the Bonds and will not be reduced as a result
of the Violation.
3. The Settlement Amount paid by the Issuer pursuant to this Agreement is not
refundable, or subject to credit or offset under any circumstance.
4. This Agreement is executed with respect to the credits payable by the Service
under section 6431 of the Code with respect to each interest payment on the
Bonds.
5. Notwithstanding anything to the contrary contained herein, the Service may take
any appropriate action with respect to the Bonds for violations other than those
set forth herein and for violations arising after the effective date of this
Agreement.
6. This Agreement may not be cited or relied upon by any person or entity
whatsoever as precedent in the disposition of any other case.
7. This Agreement is final and conclusive, except that:
a. The matter it relates to may be reopened in the event of fraud,
malfeasance, or misrepresentation of a material fact;
b. It is subject to sections of the Code that expressly provide that effect be
given to their provisions (including any stated exceptions for section
7122) notwithstanding any other law or rule of law; and
c. If it relates to a tax period ending after the effective date of this
agreement, it is subject to any law enacted after the Agreement date that
applies to that tax period.
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By signing, the above parties certify that they have read and agreed to the terms of this
Agreement.
ISSUER:
EIN:
BY:
City of Waterloo, Iowa
42-6005327
SIGNATURE
NAME (PLEASE PRINT)
TITLE
DATE
COMMISSIONER OF INTERNAL REVENUE:
BY:
SIGNATURE
REBECCA HARRIGAL
DIRECTOR, TAX EXEMPT BONDS
NAME AND TITLE
DATE
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Exhibit A
Taxpayer Information Worksheet
For
Electronic Federal Tax Payment System Deposits
This Agreement requires the electronic deposit of an amount to the U.S. Treasury
through the Electronic Federal Tax Payment System (EFTPS) as a term for resolution of
certain identified matters related to interest paid on a municipal obligation. This
payment must be deposited in accordahce with the directions contained in this Exhibit.
Please carefully review the taxpayer information listed below and immediately report any
errors to the IRS Tax Exempt Bonds employee assigned to your case. If, to the best of
your knowledge, the information is correct, then please deposit all required payments
through the EFTPS (either EFTPS — Direct or EFTPS — Through a Financial Institution)
accurately and in accordance with this information and the terms of this Agreement.
1. Total Amount of Tax Deposit: $5 000.00
2. Taxpayer's Employer Identification Number (EIN): 42-600XXXx
3. Taxpayer Name Control (4 characters): CITY
4. Taxpayer Name (up to 35 characters): City of XXXX
5. Tax Type (5 characters): 80384
6. Tax Year (2 digits): 09
7. Tax Month (2 digits): 06
Your financial institution may call the EFTPS Financial Institution Helpline for questions
or assistance at 1-800-605-9876 (Monday — Friday, 8:00 a.m. — 8:00 p.m., Eastern
Standard Time).
NOTE: If you are not enrolled in EFTPS— Direct or EFTPS— Through a Financial
Institution, or otherwise wish to use the Same Day Payment option, then please provide
your financial institution with the information listed above and direct them to accurately
deposit your payments utilizing the following routing and account numbers:
Routing Number (RTN):
Receiving FI Name:
Beneficiary:
Account Number:
091036164 ERB MPLS ETA
USTREAS SINGLE TX
426004676:CITY:City of XXXX
XXX:80384:09:06
20092900IRS
If the financial institution has difficulty transmitting the EFTPS same-day payment,
please call 1-800-382-0045 (Monday — Friday, 7:45 a.m. — 4:30 p.m. Central Standard
Time) to receive assistance from a Customer Service Representative at the Minneapolis
Federal Reserve Bank.
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CONSENT TO DISCLOSE TAX INFORMATION
I hereby consent, pursuant to section 6103(c) of the Internal Revenue Code of 1986
(as amended), to the disclosure of return information (as defined in section
6103(b)(2)) relating to the Closing Agreement (Agreement) between the City of
Waterloo, Iowa ('Taxpayer") and the Commissioner of Internal Revenue, executed
by the Issuer on as follows:
The Internal Revenue Service may disclose the existence and subject
matter of the Agreement under the following circumstances:
a. In the event of a default by Taxpayer on any term in the
Agreement; or
b. To the extent that the Internal Revenue Service deems
necessary to correct any material misstatement with respect to
the Agreement in response to a public statement by Issuer, or
an agent of Taxpayer.
Such disclosure may be made to Members of Congress, the press,
and the general public, and may be made by any means, including
press releases and notices in Internal Revenue Service publications.
This authorization is applicable only to the taxability under section 103 of the Internal
Revenue Code of interest paid on $7,435,000 General Obligation Bonds Series
2009A (Taxable Build America Bonds), from June 24, 2009 to June 1, 2015. I am
aware that in the absence of this authorization, the returns and return information of
City of Waterloo, Iowa, are confidential and may not be disclosed except as
authorized by the Internal Revenue Code.
I certify that I have the authority to execute this consent on behalf of Taxpayer:
Issuer:
EIN:
By:
Title:
Signature:
Date:
City of Waterloo, Iowa
61-6005327